U.S. Rep. Tom Emmer (R-MN) on Oct. 8 reintroduced the Retirement Inflation Protection Act of 2020 to clarify for retiring Americans that taxes would not be due on gains resulting from inflation.
“Retiring Americans should not be penalized for investments that are designed to financially secure their retirement,” Rep. Emmer said. “Regressive taxes like inflation hit low-income Americans the hardest.”
The bill would protect Americans 59 ½ years or older when they dispose of assets like a house, a business or stocks, according to a bill summary provided by Rep. Emmer’s office.
The measure would help ensure that individuals only pay capital gains on real increases in the value of an asset, thereby allowing them to keep more of their own money for retirement, according to the summary.
“I am proud to reintroduce the Retirement Inflation Protection Act to bring relief, especially now, to those seeking a comfortable retirement after their many years of work,” said Rep. Emmer. “This legislation will create a safeguard for retiring Americans’ hard-earned assets, while enabling them to be more self-sufficient.”
Bob Carlstrom, president of AMAC Action, which is the advocacy arm of the Association of Mature American Citizens, and Grover Norquist, president of Americans for Tax Reform, endorsed the bill.
“I look forward to continuing work on securing everyone’s financial security, especially those headed into their golden years,” Rep. Emmer said.